Fraudulent DEPB scrips and transferee liability referred to Larger Bench to settle duty, penalty and limitation issues

A CESTAT Mumbai decision referred the matter to a Larger Bench to resolve conflicting views on whether DEPB scrips obtained by fraud or forgery can still be enforced against a transferee for duty, penalty, interest and confiscation. The reference also covers the allied limitation issues arising from such transfers. The operative effect is that the conflicting legal questions were not finally decided at this stage and were sent for authoritative resolution by a Larger Bench.

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Outcome: The matter was referred for constitution of a Larger Bench to resolve the conflict on whether DEPB scrips obtained by fraud or forgery can be enforced against a transferee for duty, penalty, interest, confiscation and the allied limitation issues.

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